CAT vs NVT: Correlation
Caterpillar Inc. (CAT) and nVent Electric plc (NVT) show a strong relationship: their 3-year correlation of weekly returns is 0.62.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAT and NVT?
Over the past 3 years, CAT and NVT moved with a correlation of 0.62, which is strong. Recent behaviour matches the longer record: 0.60 over 1 year against 0.62 over 3. Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 671.7 %².
Among the 36 assets we track against CAT, NVT ranks #6 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months CAT outperformed by 18.6 percentage points (+90.5% for CAT against +71.9% for NVT).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
CAT vs NVT: side by side
| CAT (Caterpillar Inc.) | NVT (nVent Electric plc) | |
|---|---|---|
| 1-year return | +90.5% | +71.9% |
| 5-year return | +321.1% | +382.4% |
| Volatility (ann.) | 29.4% | 36.7% |
| Beta vs S&P 500 | 1.03 | 1.68 |
| Max drawdown (3Y) | -34.0% | -46.7% |
| Market cap | $375.6B | $25.2B |
| P/E (trailing) | 35.3 | 43.2 |
| Dividend yield | 0.75% | 0.53% |
| Sector / category | Industrials | US Listed |
Year-by-year returns
| Year | CAT | NVT |
|---|---|---|
| 2022 | +18.6% | +3.3% |
| 2023 | +25.9% | +56.0% |
| 2024 | +24.7% | +16.6% |
| 2025 | +60.3% | +51.3% |
| 2026 | +43.5% | +53.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAT and NVT good diversifiers for each other?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between CAT and NVT?
The CAT/NVT correlation stands at 0.62 on a 3-year window (1 year: 0.60, 5 years: 0.61), computed from weekly returns as of 2026-08-27.
Is NVT a good diversifier for CAT?
Somewhat, no more. With 0.62 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.62 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: CAT correlations · NVT correlations
